Candlestick Mastery · Module 09 of 15
Support & Resistance
Candles behave differently around key price levels. The level is where signals are born.
Where candles matter most
If structure is the trend, support and resistance are the specific price levels where battles are fought. The most reliable candle signals appear exactly at these levels — and almost nowhere else.
Support is a level where buyers have repeatedly stepped in — a floor. Resistance is a level where sellers have repeatedly appeared — a ceiling. At these levels, candles start speaking clearly, in four recognisable behaviours:
- Breakout — a strong close beyond the level, ideally on expanding volume. The level gave way; a new move may begin.
- False breakout — price pierces the level but closes back inside. A trap, covered in full in Module 11.
- Rejection — a long wick at the level with a weak body. Price reached the level and was firmly refused.
- Retest — after a breakout, price returns to the broken level. If the old resistance now acts as support (or vice-versa), the breakout is confirmed and the level has flipped roles.
In short
Support is a floor, resistance a ceiling. Breakout, false breakout, rejection and retest are how candles behave there — and there is where signals count.